Top CD Rates Today, July 17, 2023
CD Term Today's Top National Bank Rate Today's Top National Credit Union Rate Today's Top National Jumbo Rate 3 months 5.16% APY 5.12% APY 5.20% APY 6 months 5.36% APY 5.65% APY 5.25% APY 1 year 5.48% APY 5.50% APY 5.55% APY 18 months 5.33% APY 5.50% APY 5.27% APY 2 years 5.05% APY 5.27% APY 5.23% APY 3 years 4.80% APY 5.13% APY 5.18% APY 4 years 4.65% APY 4.85% APY 5.12% APY 5 years 4.66% APY 4.77% APY 4.85% APY
To view our lists of the top-paying CDs across terms for bank, credit union, and jumbo certificates, click on the column headers above.
Where Are CD Rates Headed This Year?
Though CD rates are already at record levels, they could certainly rise a bit more. That's because the Federal Reserve is widely expected to increase the federal funds rate by a quarter percentage point at its meeting next week. The fed funds rate has a direct impact on the CD rates that banks and credit unions are willing to pay customers for their deposits.
The Federal Reserve has been on a mission since March 2022 to combat decades-high inflation with aggressive hikes to its benchmark rate. The cumulative increase has so far totaled 5.00%, driving today's savings and CD rates to their highest levels since 2007. That's created a heyday for CD shoppers, as well as anyone holding cash in a high-yield savings or money market account.
One month ago, the Fed held its benchmark rate steady for the first time in 11 meetings, in order to better study the impact of previous rate hikes. Minutes from the June 14 meeting were released July 5, and combined with statements from Fed Chairman Jerome Powell during the three weeks following the meeting, signals were strong that two more rate hikes were still possible this year. As a result, financial markets are all but certain the Fed will implement a quarter-point hike at its meeting scheduled to conclude on July 26.
Last week, however, the prospect of further increases after July diminished a bit. On Wednesday, the monthly report of headline inflation showed June prices rose just 3.0% year-over-year, a notable improvement over May's 4.0% level. And Thursday saw the release of a lower-than-expected inflation figure on wholesale prices. These signs of cooling inflation have investors adjusting their predictions about future Fed rate moves, with more of them now betting this July increase will be the Fed's last one of 2023.
No one ever knows for sure what the Fed will do many months down the road, so these forecasts should always be considered with caution. Each Fed decision is based on the latest economic data and financial news, and that can change dramatically over a short period, never mind a long one. But what we can be fairly sure of is that any rate hike the Fed does implement will almost certainly nudge CD rates a little higher. When at some point it appears the Fed is ready to end its rate-hike campaign for good, that will likely mean CD rates have peaked.
Note that the "top rates" quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often five, 10, or even 15 times higher.
Rate Collection Methodology Disclosure
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the CD's minimum initial deposit must not exceed $25,000.
Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.
Source: Investopedia
